Microsoft (not) buying Capcom?

Sources: See below. The official story: "Microsoft does not comment on rumors or speculation." -- Microsoft rep. As for Capcom...see below. What we heard: It's no secret that Microsoft wants to break into the Japanese game market--badly. When the Xbox 360 launched in late 2005, it allocated a...

Sources: See below.

The official story: "Microsoft does not comment on rumors or speculation." -- Microsoft rep. As for Capcom...see below.

What we heard: It's no secret that Microsoft wants to break into the Japanese game market--badly. When the Xbox 360 launched in late 2005, it allocated a third of its launch stock to the island nation--where half of it gathered dust on store shelves while bored shopkeepers stood by picking their noses.

Microsoft has also tried the software approach, hiring Japanese game-design legends such as Final Fantasy creator Hironobu Sakaguchi and Space Channel mastermind Tetsuya Mizuguchi to make Xbox 360 exclusives. Unfortunately, the latter's first effort, Ninety-Nine Nights, fizzled on both sides of the Pacific. However, the former's debut, Blue Dragon, fared as well as an Xbox 360 game can in Japan, given the platform's limited base. It sold more than 80,000 units in its first four days on the Japanese market last fall.

Still, Microsoft hasn't spent tens of millions in Japan to eke out modest hits. So the fact that it might opt to acquire a major Japanese publisher seems perfectly plausible, given its near-bottomless bank account. Thus was spawned this week's top rumor, which had Microsoft buying Capcom, the developer-publisher behind the Resident Evil series, outright.

Sure, it makes sense. Capcom has made two critically acclaimed Xbox 360 games, Dead Rising and Lost Planet: Extreme Condition. (Look for the latter's review on GameSpot later today.) And Microsoft is flush with cash--$35 billion in reserves as of last summer, according to Reuters. So why not drop a relatively small chunk of change to take on Sony and Nintendo on their home turf?

However, plausibility does not equal reality. And in this case, the reality is that, for the time being, Microsoft is not buying Capcom. Apparently this latest orgy of speculation is an ancient rumor, resurrected by a Japanese blog promising a "On January 11th in game industry large announcement," according to a clunky Babel Fish translation. That, in turn, prompted a huge forum thread on the new Gaming Age forums, the Star Wars cantina of game gossip, which led to another post on the EvilAvatar forums, a top virtual water cooler for the overexcited gamer. Then came RSS feeds, rampant content poaching and...well, you do the math.

While Microsoft quickly raised its boilerplate defense shields (Q: "Is the world flat?" A: "Microsoft does not comment on rumors or speculation."), Capcom was more forthcoming. "It's a 3-year-old rumor, most likely refueled by our recent spate of 360 titles," a rep told GameSpot.

Bogus or not bogus?: BOGUS. "No soup for you! You come back, one year!"

583 Comments

  • angelus_ix

    Posted Mar 3, 2007 12:46 pm PT

    and capcom does not suck, only those who dont understand it. i love resident evil 4, it was freakin awesome, and it was also the best resident evil on the ps2, so what not to like

  • angelus_ix

    Posted Mar 3, 2007 12:43 pm PT

    well thats how microsoft is, you don't see bill gates getting any poorer :p

  • _Sam_

    Posted Feb 10, 2007 3:07 pm PT

    Well Microsoft could easily buy many companies

  • SeyhanC

    Posted Feb 5, 2007 10:55 am PT

    Sony Fanboys should be happy now...Cuz now they can get Devil May Cry. Would've been a good move though if they did get Capcom, Capcom has great games, Lost Planet & DeadRising are both great games that they released for the 360.

  • mammyboy

    Posted Feb 3, 2007 9:26 am PT

    Man capcom sucks anyway

  • reeconstead

    Posted Feb 1, 2007 3:24 pm PT

    No soup.......

    brilliant!
    Its a way into a new type of gaming concept for them, do it or die!

  • Cgreen903

    Posted Jan 27, 2007 11:02 am PT

    Note to Microsoft: Your trying to make money, Capcom makes money, you can buy Capcom and make money, its that simple. PS: Sticking it to Sony - Priceless

  • tye_chi

    Posted Jan 24, 2007 5:30 am PT

    pfft. n00bz...

    ROLF.

  • datniccah187

    Posted Jan 23, 2007 1:35 pm PT

    We'll if Microsoft is not buying Capcom that is good news for the Sony. The last thing Sony needed was Microsoft buying up a major gaming company and possibly making some of the biggest titles in the industy be Xbox exclusive.

  • skulldawg

    Posted Jan 18, 2007 10:44 pm PT

    microsoft sucks, end of story.

  • skulldawg

    Posted Jan 18, 2007 10:43 pm PT

    microsoft sucks, end of story.

  • Grechin

    Posted Jan 16, 2007 3:38 pm PT

    Haha, Sony would've sent it's Japanese ninjas, could call by microsoft, Let Developers make their own desicions, on both sides of the fence.

  • ivan_the_one

    Posted Jan 16, 2007 11:32 am PT

    lol I love the sop nazi joke...^_^

  • ivan_the_one

    Posted Jan 16, 2007 11:23 am PT

    lol I love the soup nazi comment at the end of the article....^_^

  • huskerman34

    Posted Jan 16, 2007 10:38 am PT

    I dont think Microsoft should buy Capcom. I think Every company should make games for all next gen systems. I dont like the idealogy of it. If it fails in Japan then it wont come in the US. We have the second largest gaming market in the world. So what if the Japaneese doesnt want to play a xbox 360 there the ones missing out. IF Microsoft wanted to they could on Sony, and Nintendo.

  • SolidSnake2020

    Posted Jan 16, 2007 9:40 am PT

    if They buy it most developers will leave and the franchise will be owned by MS and they will need new people to start working on them. why would they buy every game company and is Capcom a Japanese company if So it wont be sold.

  • Rizer

    Posted Jan 16, 2007 9:26 am PT

    While it is just a rumor...I can't help but feel that it still may be a good idea for both Capcom and Microsoft.

  • TheDarkDisciple

    Posted Jan 16, 2007 8:35 am PT

    the 360 is going to get more out of capcom anyway

  • ONURLU1925

    Posted Jan 16, 2007 6:50 am PT

    Capcom has survived from Microsoft's Curse. Thanks God...

  • Parhelion

    Posted Jan 16, 2007 6:48 am PT

    I loved the Seinfeld "Soup Nazi reference, made me crack up!
    http://en.wikipedia.org/wiki/The_Soup_Nazi
    There's a guy in my town who sells fast food who looks just like him and is just as irritable!!!! I always recall the "Soup Nazi thanks to him!

  • medevil_dead

    Posted Jan 16, 2007 6:33 am PT

    I hope this move is for good...

  • TPSISO9000

    Posted Jan 16, 2007 12:10 am PT

    Forget breaking into the eastern market, it would be a smart move for the console war here. While Japan is important, the largest market is the US, and the first Xbox showed that America could support a console by itself. Capcom titles have been system sellers for years, and the broader public associates them with Playstation. Right now, nothing is more talked about on the PS3 forums than DMC; and nothing did more for the GC than RE4. Taking away all that Capcom brings to Sony would be as important as the sales those exclusives would generate for MS.

  • Skiggy80

    Posted Jan 15, 2007 10:22 pm PT

    I wouldn't say they are "not" buying Capcom, for a few reasons. 1) Was it the head of Capcom that made these statements? or was it an noraml Capcom rep? Because a normal Capcom rep would not be able to say "yes" Microsoft bought us out because that can lead to inside trading witch is against the law. I will nt count this out until Microsoft or Capcom come out bluntly and say no, its not happening. Microsoft would NOT ruin Capcom! Lets stop saying this because anyone who says this is a typical Sony fanboy. You would be mad because there would be no DMC4, RE5 etc... So if this deal goes through, this will be really good for Capcom. Plus look at the games they have already made for 360. Lost Planet sold over a million copies in 1 day and Dead Rising sold Boku copies as well. As of right now, Microsoft would be the console to create for dur to its 10 million plus consoles being sold. I love Capcom and I personally would like to see DMC4 come to the 360. I own all 3 next gen consoles and if you ask me, I thinkthis time around Microsoft is going to dominate. They are making the right moves by eliminating Sony Exclusives and picking up a lot more 3rd party support. I really cant wait to see what the future brings in video game entertainment. I love all 3 systems and all 3 will have good games regardless.

  • Skiggy80

    Posted Jan 15, 2007 9:28 pm PT

    I wouldnt say "not" buying Capcom for the simple reason that we dont know who said they are "not" This could have been a small time Capcom Rep that is protecting himself from giving away big corporate news. That is against the law. A corporatation doesnt disclose info that would affect the market until they go public and the deal is done. This could be a result of inside trading and its against the law big time. So I wouldnt cout it out yet. I hope they do. Even though I have a ps3 and 360, I would rather play DMC4 on 360. And I just think it would be funny if the 360 was the only console you can get RE5 and DMC4. Capcom is also known for Street Fighter series and many RPG's. Go Microsoft and go Capcom, seal the deal!!!

  • Skiggy80

    Posted Jan 15, 2007 9:18 pm PT

    I wouldnt say they are "Not" buying Capcom simply for the reason that it would be against company policy for a Capcom rep to say yes due to market share. It would be like giving a corporate tip and in almost every corporate company, you ar e not allowed to give out huge info such as this to the public until they come out and say it publicly. I have a strange feeling that Microsoft is definitely going to buy some company, maybe not Capcom, but I really hope they do. I would love to see DMC4 on my 360. I have a ps3, but I just think it will run better on the 360 overall. This would be an awesome move for Microsoft considering all the japanese gamers they will acquire. Imagine DMC4 and RE5 being only for Microsoft. Then we would definitely watch 360 sales sky rocket.

  • igl

    Posted Jan 15, 2007 8:09 pm PT

    *shiver*

  • ricsuave

    Posted Jan 15, 2007 8:01 pm PT

    "juanfraino
    Thanks god it's bogus, cause everytime ms buys a company, a puppy gets ill."

    That puppy's name must be Steve Jobs. Or Sony.

  • ricsuave

    Posted Jan 15, 2007 7:50 pm PT

    "Kruegmeister
    Thank God this was False.
    I own a 360 and a PS3 so It does not Lock me out either way.
    But Microsoft already has shown with Windows that once they Crush all the Competition they will Rise the Price through the Roof."

    Really? That's funny, my windows was free. And when I get my next PC or Laptop in a few years, my Vista will be free. Strange.

    If anything Sony seems to be the company that crushed the competition (PS2) then rose the price through the roof (PS3).

  • juanfraino

    Posted Jan 15, 2007 7:45 pm PT

    Thanks god it's bogus, cause everytime ms buys a company, a puppy gets ill.

  • Hawaiianc

    Posted Jan 15, 2007 7:40 pm PT

    wait what is bogus??? "Microsoft (not) buying Capcom?" the not part or "Microsoft buying Capcom?" part???

  • junk56

    Posted Jan 15, 2007 7:31 pm PT

    Lost Planet and Dead Rising flunked in Japan though..

  • Kruegmeister

    Posted Jan 15, 2007 7:09 pm PT

    Thank God this was False.
    I own a 360 and a PS3 so It does not Lock me out either way.
    But Microsoft already has shown with Windows that once they Crush all the Competition they will Rise the Price through the Roof.

    You think the $499 PS3 is expensive... with its 66% Price increase over what the PS2 Launched at (2000).
    Windows Me (2000) cost me $49 for an Upgrade Package.
    Windows XP Costs me $200 Dollars a few years later. (300% Increase)
    Windows Vista is $300 dollars. (500% Increase)
    Do not Let Mr Monopoly win the Console War, We will ALL Pay for It.

  • Mry087

    Posted Jan 15, 2007 6:02 pm PT

    stupid fan boys spreading there rumors

  • ricsuave

    Posted Jan 15, 2007 5:25 pm PT

    "DRUNK_CANADIAN
    Now if they bought out Square Enix in its entirety .....they could make FF XBox exclusive and single handily cut Sony out of the race......as for Nintendo....the launch of the Wii was basically putting a gun to Nintendo's head and pulling the trigger.."

    I would love that just to see how all of a sudden the SonyBots scream how Final Fantasy sucks and is overrated.

  • DRUNK_CANADIAN

    Posted Jan 15, 2007 5:07 pm PT

    Now if they bought out Square Enix in its entirety .....they could make FF XBox exclusive and single handily cut Sony out of the race......as for Nintendo....the launch of the Wii was basically putting a gun to Nintendo's head and pulling the trigger..

  • Tommi88

    Posted Jan 15, 2007 4:46 pm PT

    "Heh. A ridiculous rumor is more like it. The day that Capcom gets taken over by Microsoft to do PC and XB360 only titles is the day I kiss a toilet sea"

    im gonna remember that and when this happens and it will if sony keeps failing as it is doing right now, ur not gonna be so happy!

  • Tommi88

    Posted Jan 15, 2007 4:41 pm PT

    the only reason the 360 isnt selling well in japan and this is the ONLY reason there is! it is because its western made and nothing else! if this was a sony product this console would have sold so much much more in japan so screw all u ps3 fanboys that thinks that the 360 sucks just bcuz it doesnt sell well in an ignorant country like Japan!

  • funnymario

    Posted Jan 15, 2007 4:12 pm PT

    Finally.

  • beet0

    Posted Jan 15, 2007 2:59 pm PT

    MICROSOFT BUYING CAPCOM.. yeah right Capcom would never sell their souls to Microsoft, even though i'm enjoying my 360 currently it would be cool to bring the real "next gen graphics" to capcom games.

  • buffer34

    Posted Jan 15, 2007 2:49 pm PT

    It seems like it would be a good start for Microsoft to help them start getting into the Japanese market.

  • cherrytwister

    Posted Jan 15, 2007 2:32 pm PT

    SO IF THEY ARE NOT BUYING CAPCOM, DOES THIS MEAN THEY ARE STILL GOING TO BUY COCA COLA AND THE FORD MOTOR COMPANY AND GAMESPOT? WAIT A SECOND, THEY ALREADY OWN THIS WEBSITE. THATS WHY THE BIAS ARTICALS ALL THE TIME.

  • Pablo620

    Posted Jan 15, 2007 2:12 pm PT

    if PS3 didnt exist this rumor wouldnt either

  • PixyMisao

    Posted Jan 15, 2007 1:56 pm PT

    Capcom might as well commit sepukku with Dante's sword and give M$ Mega Man's arm cannon to finish them off. Luckily it will never happen, and good thing too otherwise several virtual console games would be lost.

  • saugh

    Posted Jan 15, 2007 1:54 pm PT

    I'm glad they're not buying capcom. I hate it when major companys just become limited to one console, look at Rare, Xbox 360 only now, when they used to be Nintendo only. Not that I'm complaining, but its seems a shame to limit one campany to another when they deserve their own freedom

  • sophospeare

    Posted Jan 15, 2007 1:53 pm PT

    Well, if this doesn't ever happen, I'm willing to bet it won't be from MS trying really hard to get it done. It would make total sense as it would get them into the Japanese market and put a large dent into Sony and Nintendo's future games. Imagine...no Resident Evil 5 for PS3.

    I'm not sure how this would help Capcom, though, other than the huge wad of cash they would have in their pockets...which, in the end, is what big business is all about.

  • Inuyasha5262

    Posted Jan 15, 2007 12:34 pm PT

    microsoft needs to fight fair.

  • ferrarimanf355

    Posted Jan 15, 2007 12:08 pm PT

    I really wish you guys would just leave NeoGAF alone. That forum is worthless as a source of gaming information.

  • keinuveye

    Posted Jan 15, 2007 11:57 am PT

    Capcom rules imo

  • niwom510

    Posted Jan 15, 2007 11:52 am PT

    I guess the Japs are still sore that we P to the OWN3D them and that America keeps making games about how much we kicked their arses. (WWII)

  • kaz78689

    Posted Jan 15, 2007 11:42 am PT

    sony should buy capcom and square this would definently kill of microsoft in japan. o yeah and allow porn on blu ray, since porn decided the fate of betamax vs vhs. r.i.p blu ray

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